Consumer Price Index - CPI
An index that measures prices based on the value of certain good and services in an attempt to meter and measure inflation rates.
The Consumer Price Index (CPI) is a measure of inflation experienced by consumers. It measures changes in the prices of a standard basket of goods that the average consumer uses. Trying to find the 200 or so goods an average person uses is impossible to precisely define—like...who really is the "average consumer"?
Well, the Bureau of Labor Statistics tries their best to make an approximation of the most commonly used goods and services from eight different categories. It's important to note that the CPI only looks at money consumers spend on goods and services, so it doesn't include finanacial assets or income taxes.
Related or Semi-related Video
Finance: What is the Consumer Price Inde...18 Views
Finance allah shmoop What is the consumer price index or
c p i All right prices They change Five bucks
buys a whole lot less today than it did two
hundred years ago Well here's what Five bucks buys you
today And here's what Five bucks bought you in Seventeen
Ninety three house five horses Nice stuff Well tracking prices
is the key to understanding what inflation is doing in
the world or how much of it we have So
in amalgam of e con experts put together a basket
of goods designed to reflect generally how the average consumer
if there is such a thing feels inflation in their
wallets Will those prices air tracked copiously like monthly ish
and then published as an index number that's evaluated relatively
like if this is last month's cp i which saturday
one hundred seventeen point three two while this month's number
one hundred seventeen point five three shows inflation at a
pace of about two and a half percent annually And
blah blah blah blah So what's in that c p
ay basket that's tracked well there's a bus pass in
a major metro a pound of coffee a half gallon
Carton of milk funeral A flu shot movie tickets And
on and on and on basically all the stuff that 00:01:21.408 --> [endTime] makes life priceless What No